DEALING with DEBT

DEBT CONSOLIDATION

If you have a lot of debt, you're not alone. Today, more and more Americans are burdened with credit card and loan payments. So whether you are trying to improve your money management, having difficulty making ends meet, want to lower your monthly loan payments, or just can't seem to keep up with all of your credit card bills, you may be looking for a way to make debt repayment easier. Debt consolidation may be the answer.What is debt consolidation?
Debt consolidation is when you roll all of your smaller individual loans into one large loan, usually with a longer term and a lower interest rate. This allows you to write one check for a loan payment instead of many, while lowering your total monthly payments.How do you consolidate your debts?

There are many ways to consolidate your debts. One way is to transfer them to a credit card with a lower interest rate. Most credit card companies allow you to transfer balances by providing them with information, such as the issuing bank, account number, and approximate balance. Or, your credit card company may send you convenience checks that you can use to pay off your old balances. Keep in mind, however, that there is usually a fee for this type of transaction, and the lower rate may last only for a certain period of time (e.g., six months).
Another option is to obtain a home equity loan. Most banks and mortgage companies offer home equity loans. You'll need to fill out an application and demonstrate to the lender that you'll be able to make regular monthly payments. Your home will then be appraised to determine the amount of your equity. Typically, you can borrow an amount equal to 80 percent of the value of the equity in your home. Interest rates and terms for home equity loans vary, so you should shop around and compare lenders.
Some lenders offer loans specifically designed for debt consolidation. Again, you'll need to fill out an application and demonstrate to the lender that you'll be able to make regular monthly payments. Keep in mind, however, that these loans usually come with higher interest rates than home equity loans and, depending on the amount you borrow, may require collateral on the loan (e.g., your car or bank account).Advantages of debt consolidation
The monthly payment on a consolidation loan is usually substantially lower than the combined payments of smaller loans
Consolidation loans usually offer lower interest rates
Consolidation makes bill paying easier since you have only one monthly payment, instead of many Disadvantages of debt consolidation
If you use a home equity loan to consolidate your debts, the loan is secured by a lien on your home. As a result, the lender can foreclose on your home if you default on the loan.
If the term of your consolidation loan is longer than the terms of your smaller existing loans, you may end up paying more total interest even if the rate is lower. So you won't actually be saving any money over time, even though your monthly payments will be less.
If you use a longer-term loan to consolidate your debts, it will take you longer to pay off your debt. Should you consolidate your debts?
For debt consolidation to be worthwhile, the monthly payment on your consolidation loan should be less than the sum of the monthly payments on your individual loans. If this isn't the case, consolidation may not be your best option. Moreover, the interest rate on your consolidation loan should be lower than the average of the interest rates on your individual loans. This allows you not only to save money but also to lower your monthly payment.
The 360 Degrees of Financial Literacy Web site offers general information for managing personal finances and does not recommend specific financial actions. For financial advice tailored to your situation, please contact an expert such as a CPA or a personal financial advisor.

source:http://www.360financialliteracy.org/

A Life-ChangingFinancial Literacy and Money Management Seminar:

"FINANCIAL SOLUTIONS TODAY"

You will learn the following:

- The Steps to Financial Independence- How Money Works
- How to Build a Solid Financial Foundation
- The Wealth Formula
- Different Investment Vehicles:
Mutual Funds, Stocks, etc.
- Investment Strategies: Money Cost Averaging, Diversification, etc.
- How to Create Multiple Passive Income Streams
- How to Become Your Own Financial Adviser/ Broker

Dates: Saturday, @ 2pm Monday , Wednesday,@ 7pm,
3/F, King's Court Bldg 1, Chino Roces Ave., Makati City

*No Registration Fee,*No Registration Fee,*No Registration Fee


FREE ....FREE...FREE....Training


BEFORE:•
With a little hard work & careful budgeting, most families could realize their dreams of buying their own home, sending their children to college & retiring in comfort.

A parent can raise 10 or more children—only the father works, mother stays at home.• Having a job/ profession & only one source of income is enough.But

TODAY:• Many families are financially struggling.- A couple, both working, can hardly raise 2 or 3 kids. - Couples often argue over finances.- Can’t fund parent’s hospitalization/ medical needs•

INFLATION & INCREASING COST OF LIVING: Makes it difficult to save money for the future. When the need arises (illness, education, emergency), people fall into debt.

• DEBT TRAP: credit cards, car/ housing loans, pawnshops

• JOB & BUSINESS INSECURITY: loss of income due to business failures & lay-offs.• Having multiple streams of income is already a necessity.

• Gaining FINANCIAL EDUCATION/ LITERACY is much needed.If we can show you FINANCIAL SOLUTIONS TODAY,

are you willing to learn?


Email me at firstworldpinoy@gmail.com to join this great even.

Again its FREE ....FREE... FREE

PS : May your dreams come true ...financial freedom

SMART SPENDING, SMART SAVING TIPS THIS SEASONS HOLIDAY

Ten Tips for Holiday Spending

1. Review last year’s spending and decide if and where you can cut back this year.

2. Decide who should be included on this year’s gift list; consider drawing names instead of buying for everyone.

3. Set a price limit for gifts, holiday decorations and cards, clothing, food, gift wrapping, mailing, etc.

4. Develop a realistic spending plan, considering how much money is left after paying bills.

5. Stick to your plan by keeping track of spending, so you don’t exceed your budget.

6. Avoid using credit, as the bills will come due during the new year!

7. Consider sales and outlet, discount, and thrift stores.

8. Instead of buying gifts, give “gift certificates” for your time and talents.

9.Create your own decorations and greeting and gift cards.

10. Take advantage of after-holiday sales for next year.

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"Millions of Filipinos never plan to FAIL, they simply FAIL to PLAN."

My your dreams come true.

7 Common (Expensive) Financial Mistakes

Too many young adults who are already out of school have low levels of financial knowledge so we, as a society, need to come up with other alternatives. Employers could offer financial literacy programs or at least provide resources to help young people avoid some of these costly mistakes. Schools should offer basic financial planning classes.
If nothing else, the recession has made us brutally aware of what we don’t know. Here are some of the more common, and costly mistakes, and ways that people can avoid them.
1. Not having an emergency fund. Experts recommend that everyone have a three-month emergency fund—at least. You never know when you’re going to get a flat tire or a leaky pipe—emergencies that happen all of the time but that can become very costly if you’re not ready for them. Having to borrow money on a high interest credit card can cost you hundreds in wasted interest payments.
What happens if you lose your job and have to dip into your emergency fund? First, don’t stress. It’s ok to use the emergency fund for rent or food—for needs. It’s not such a good idea to use it for that pair of shoes you really want or a night on the town. During a recession it can be hard to have and maintain an emergency fund. That’s ok, as long as you save what you can.
2. Slow leakers. These are the people who spend money on bottled water and daily Starbucks runs. The people who use their debit card for everything, no matter how small, and then forget to include the little things when they balance their bank account or budget. Even that $2 coffee can lead to overdraft fees.
3. Bad budgeters. These are the people who forget about certain expenses and therefore don’t budget for then. Or, they don’t budget at all, then wonder why they don’t have any money.
4. Minimum wagers. Paying just the minimum on your credit card is another expensive mistake. The bigger the balance, the longer it will take you to pay off and the more you will pay in interest. If possible, only use your credit cards for emergencies and pay off the entire balance on time. If that’s not possible, pay off as much as you can each month.
5. Plastic life. Living off a credit card is one of the worst money mistakes that you can make. If you are living off your credit card this probably means that you are spending more than you’re earning, a big budgetary no-no. If you are out of work and out of money you may have to live off your credit card for a while, but, in this case, you should really tighten your belt and spend as little money as possible. In addition, try to find a credit card with a low interest rate. A credit card is like a loan, meaning that the money will have to be paid back, with interest.
6. No doggy bag. It is possible to have some money leftover from a college or personal loan. As tempting as it may be do not use this money for anything other than paying back what you borrowed. Loans have to be repaid. The longer it takes to repay them the more money you’re going to end up paying in interest. Instead of spending any leftover loan money, simply use it to pay back what you have borrowed. In fact, it’s a good idea to make a loan repayment plan and begin paying back your loan as soon as you possibly can.
7. Too much, too young. Many young people make the mistake of thinking that they need to build credit while they are still in college. While it is always good to have good credit, it is not always necessary to have credit at all. Remember, it’s a lot easier to turn your credit bad than to keep it good. Don’t open a ton of accounts just to build up your credit. In reality, it only takes three months to build credit.
No one can be perfect all of the time but if you can avoid making some of these costly mistakes you can avoid wasted time and money.

Article source: http://www.richdadwisdom.com/

Fit Right in Christmas

Financially Fit Even After Christmas



Credited to: Francisco Colayco



We are just now feeling the effects of the global downturn of financial markets. The situation is unprecedented and nobody really knows how soon or how long the recovery will take. More importantly, nobody knows how the financial markets will look like after the dust settles. For sure, investment banking will no longer wield the financial clout it used to have. Most players in the industry will have probably de-leveraged and be more strongly capitalized. Unfortunately, this could also mean less credit being made available even to qualified borrowers. The bottom line is we must all be more conservative and assume that our own economic prospects may not
yet be as bright the coming year. These times call for belt tightening but aggressivepursuit of new income generating activities. Even with uncertainty, Christmas is still Christmas. When you receive your 13th month pay and/or bonus, your probable immediate reaction is a desire for self-gratification. After all, you deserve it after having worked and scrimped so hard over the past months because your salary was not enough. Salaries are never enough even if it is. You will surely admit that even if you are able to cover your living expenses and save, you still want
more. Then, you get a bonus that you see as a prize for work well done. You will surely be tempted to splurge. But before you start splurging, can you remember what we have discussed in this magazine regarding Active Income.


• Active income is the income you earn by working.
• You must set aside 20% of this hardearnedMoney
• Active income is to be used only foreveryday expenses and for savingsand investments.


Your 13th month pay and bonus are both Active Income. If you do not work, you will not get it. Therefore, you have to treat it like any other Active Income but with a twist. Since your regular salary covers your everyday expenses, then most of your 13th month and bonus should go into savings and investments. Maybe it is too much to ask that you save all of it but budget your bonus mostly for savings and a reasonable portion to support some increases in your December expenses.


DO NOT BY ANY MEANS SPEND ALL OF IT FOR ENTERTAINMENT OR GIFT GIVING!


Strictly speaking, it is only passive income that you can use for your giftgiving and parties during the Christmas season. Remember that passive income is the income you earn from your savings.
The income will come to you whether you work or not. If you are tempted to use your passive
income for the holidays, remember that if you use it instead of “rolling it over” or reinvesting it to earn more income, you will have to find a way to replace it so that you can still meet your Net Worth Goal for your retirement. After all, having a good retirement is when you have sufficient passive income to support your retirement lifestyle. You need to really save for it now while you still actively earn. If you spend it now, your retirement will surely suffer. If you really want to spread good cheer and sharing during Christmas, remember to cut down on your everyday expenses during the months or weeks before Christmas. If you have not done so during the past weeks, you will just have to reduce your Christmas expenses this year and make up for it next year. You can start cutting down on your daily expenses starting January so that you can spread more cheer for Christmas 2009. This means setting aside perhaps more than 20% for savings to be able to share more during Christmas and for that matter any other holidays you want to celebrate (including birthdays and others). Remind yourself that your life will not end after Christmas and New Year’s Day. There is nothing wrong with giving and sharing. In fact, it is one of the noblest things to do especially when we give to those who have much less without expecting anything in return. Just remember that you cannot share money that you do not have! Your first financial obligation is to yourself. You have to plan and prepare for your own future. Finally and most important, let us remember what Christmas really is. The birthday of Jesus Christ who was born in a manger. All the consumerism of Christmas is man-made. We can be happy and share but let us remember that life will continue and we will have to prepare for our future while we still have the means.


I wish you all a Blessed Christmas. For 2009, may your troubles be less! May your blessings be more! May nothing but happiness, peace and prosperity come through your door!


credited to and written by: Francisco J. Colayco

The Birth of First World Pinoy

Today is the birthday of First World Pinoy. In this site will rise the start of new breed of people, minds, talents etc. We will dedicate our time and effort to help our dearest Filipino people to become financially literate, honorable, respectful, loving, generous and most of all God fearing.

Its time to be ready , time to make a difference, and time to start this wonderful challenging site.

I am proud to be a Filipino. Kaya natin ito . FIRST WORLD PINOY!!!